Published In:
The Australian Financial Review Date Published:
17th September 2003 Author:
Robin Robertson
About a third of printing company Penfold Buscombe's business is outsourcing its services to large corporate clients.
Penfold has pursued this sector for 10 years, and its persistence has paid off, as outsourcing alone earns it about $100 million in sales a year.
Managing director Alistair Hill says outsourcing is gradually taking over a greater share of their business, given the market preference for sole or preferred suppliers for printing.
"In many cases, we take over the print part of their business and deliver them end-to-end processes, from liaising with their internal staff, the actual printing process, through to warehouse and distribution to their branches or stores around the country.
"The contract is generally one to five years and, in some cases, we take over their printing staff, or we just put our staff into their organisation."
In this climate of cost cutting, the push towards outsourced print contracts removes duplication and strips costs out of the process.
Hill says: "Where in the past clients had their own inhouse department for this process, we now do that for them because they recognise it is not a core competency. It is more efficient to have a specialist organisation like us doing it. We have the machinery, technology and online capabilities."
Recruitment firm TMP/Hudson decided to curb printing costs, and the launch of their new corporate identity started the process.
They chose a printing firm with online processes, and now general stocks are held at the printers, with an online ordering system enabling all TMP offices to view stock levels and order as required. Business cards are also ordered online, significantly reducing process and delivery time. To streamline the process, a representative from the printing firm has continued to work almost fulltime during the change with TMP.
By using such internet solutions, large cost savings were clocked up. The stockholding process was simplified and stationery is delivered as required to every TMP office in Australia. Where TMP once had an employee dedicated to ordering its many business cards, these are now ordered online through a simple form. A reliable proofreading process supports this strategy, freeing up the employee for other tasks.
A company which scrutinises daily company expenses with a view to cutting costs is Expense Reduction Analysts. One target of its pruning shears is printing costs. ERA says up to 90 per cent of Australian businesses are overspending on every-day items.
ERA director Gary Wilson says outsourced printers can offer cost savings in many different ways, from printing up marketing material to bundling in other services, such as sending out the mail. For instance, many organisations have standard flyers which they routinely send to clients. New technology lets them gather their marketing material in digital form, and tailor a newsletter aimed at specific clients.
This complex task can be done more cheaply and neatly by outsourced printers, who have the equipment and skills on tap. This can save substantial costs for a corporation, as it can dispense with printing equipment and trim staff.
